The market continued its positive momentum for second consecutive day with the Sensex touching all time high, while the Nifty crossed 12k mark during the day.
The BSE Sensex gained182 points to close just shy of its lifetime high on Wednesday, propelled by index heavyweight Reliance Industries, Sun Pharma and IndusInd Bank.
After scaling a new intra-day record of 40,816.38, the 30-share index ended 181.94 points, or 0.45 per cent, higher at 40,651.64. It is just 2 points shy of its all-time closing high, hit on November 7, 2019.
Similarly, the broader NSE Nifty closed just below the crucial 12,000-mark, advancing 59 points, or 0.49 per cent, to end at 11,999.10.
Post the Q2 results season, the focus has now shifted toward government policy action as well as global developments. Market interest in select PSUs increased post-talks of divestment in Union cabinet meeting.
Going forward, while the Nifty upside remains limited due to fair valuations, stock specific action is likely to continue.
“Technically, Nifty formed a Doji Candle on daily scale which indicates indecisiveness at higher levels. But it managed to hold above previous day’s high throughout the session and formed higher highs-higher lows on second consecutive session. The support for Nifty is now inching higher towards 11900 and then 11850 levels; while immediate hurdle remains intact at 12100 – 12150 zones,” Siddhartha Khemka, Hea - Retail Research, Motilal Oswal Financial Services Private Ltd.
“Markets usually run ahead of macros and price future growth. There are three positive indicators for growth -- reduction in corporate tax rate, proposed divestment of large public sector units, and a possible resolution of the US-China trade impasse. Therefore we see growth coming back in 2020,” said Sanjiv Bhasin, Director, IIFL Securities.
“Second Quarter Earnings were rescued by corporate tax cuts and with Fund Houses piling on to large cap index components we have seen record highs today led by RIL which is rapidly gaining market share in its Telecom vertical,” S Ranganathan, Head of Research at LKP Securities.